The manufacturer has warned that the chip shortage will last at least until mid-2022

One of the world’s largest manufacturers of electronics contracts has warned that the chip shortage, which is disrupting the automotive industry and threatening the supply of consumer technology products, will last for at least another year.

Flex, the announcement of the world’s third-largest manufacturer, is still one of the worst crises forcing dark car and consumer electronics groups to re-examine their global supply chains.

Fast vehicle sales rebound Combined with the boom caused by blockchain in gaming consoles, laptops and TVs, the world’s chip maker has been overwhelmed by sharp increases in demand.

Singapore’s Flex has more than 100 countries in 30 countries and manufactures devices and electronics for Ford, including British home appliance designer Dyson, UK online retailer Ocado and computer and printer manufacturer HP. Its position in the supply chain makes it a great chip buyer.

Lynn Torrel, head of Flex’s supply and supply chain, said the manufacturers she uses for semiconductors have backtracked on forecasts when the shortage will end.

“With such strong demand, the expectation will be until the end of 2022 depending on the product. Some are expected [shortages to continue] Until 2023, ”he said.

Flex’s forecast, which is located at the heart of the car, medical devices and supply chains electronic consumption the industry, after a six-month bruise, has forced shortages to reduce production and labor by car companies.

The problem is that many companies have taken a more assertive approach to supply, such as prepaid chips. U.S. electric car maker Tesla has directly considered buying a chip plant.

They also have Asian electronics manufacturers recently he warned that the shortage of chips had begun to spread to televisions, smartphones and appliances, making the situation worse when storing Chinese groups hit by sanctions.

Added to this are the problems associated with the supply chain pandemic blocking In the Suez Canal in March, the extreme cold weather in Texas, and a the last fire In a large Japanese chip factory.

Flex CEO Revathi Advaithi said the disruptions caused by the pandemic are causing multinational customers to look much more seriously at restructuring their supply chains than the US-China trade war. This could lead to more regions being added, he added.

“Most companies will not make the decision to regionalize according to tariffs,” he said. “They know it can be a short-term thing, but the increase in pandemics and shipping costs that affect the total cost of ownership is driving regional regionalization.”

Flex, listed in New York, recorded revenue of $ 24.2 billion last year and has uniformly distributed manufacturing facilities across Europe, Asia and the Americas, forcing it to suspend production for a wide range of electronics products.

Chipmakers are investing in new production capacity, but it could take two years to put in complex facilities.

Torrel said the picture could be improved if Covid-19 vaccines cause consumer spending to shift to services and people spend less money on consumer electronics as the world heals from the pandemic.

However, he warned that apparent minor problems (such as the recent two-week shutdowns in Malaysia, which are based on many semiconductor suppliers) could have an undue impact on supply chains under pressure.